The ProShares Pet Care ETF (CBOE: PAWZ) debuted last November as the first exchange traded fund (ETF) dedicated to the pet care industry and related investment opportunities. Year-to-date, PAWZ is higher by nearly 13%.
PAWZ seeks investment results, before fees and expenses, that track the performance of the FactSet Pet Care Index. The fund seeks to invest substantially all of its assets in the securities included in the index. Under normal circumstances, the fund will invest at least 80% of its total assets in the component securities of the index. The index consists of U.S. and non-U.S. companies that potentially stand to benefit from interest in, and resources spent on, pet ownership.
At the end of last year, the FactSet Pet Care Index was home to 24 stocks. That index rebalances monthly and is reconstituted annually, according to ProShares.
“At rebalance, the companies whose principal revenue source comes from pet care related products or services will make up 82.5% of the portfolio, while companies that generate $1 billion or more (but not a principal source) of their revenue from RBICS categories will make up 17.5% of the index,” according to ProShares.
Chewy Files for IPO
A soon to be public company could eventually find its way into the PAWZ lineup. On Monday, Chewy.com, the online retailer of pet food, toys and treats, filed for an initial public offering (IPO).
“Chewy.com is just the latest ‘unicorn,’ or private company worth more than $1 billion, to take steps to go public in what is expected to be a particularly active year for IPOs,” reports Business Insider. “TradeWeb, Lyft and Pinterest have IPO’d so far, with each raising over $1 billion in fresh capital while allowing for existing investors to exit.”
At the end of last year, holdings in PAWZ had weights ranging from 0.05% to 10.38%. Chewy.com will trade under the ticker “CHWY.” It should be noted that there has been no confirmation that shares of Chewy.com will be added to PAWZ. Investors waiting to see if the stock finds its way to PAWZ following the IPO can stay abreast of that news on the PAWZ homepage.
“Chewy.com, which will trade under ticker CHWY, has also reported significant losses. The company reported a net loss of $268 million in 2018 on sales of $3.5 billion. The IPO will be underwritten by investment banks Allen & Company, JPMorgan and Morgan Stanley,” according to Business Insider.
PAWZ is up nearly 13% this year.
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